HSBC (HSBA) Q4 2025 earnings summary

Executive summary

• Achieved strong full-year 2025 performance with $71.0bn revenue (+5% YoY) and $36.6bn profit before tax, with all four business segments delivering mid-teens or better RoTE.

• Executed on strategic priorities of simplification, customer centricity, and sustainable growth, supported by investments in technology and talent.

• Completed $13.7bn privatization of Hang Seng Bank, consolidating leadership in Hong Kong and unlocking up to $0.9bn in synergies by 2028.

• Announced new growth and return targets for 2026–2028, including 5% revenue growth by 2028 and RoTE of 17% or better.

Financial highlights

• Group revenues grew 5% YoY to $71bn; profit before tax rose 7% to $36.6bn; Q4 revenues up 6% to $17.7bn.

• EPS excluding notable items: $1.51 (+15% YoY); ordinary dividend per share increased 14% to $0.75.

• Customer deposit balances grew by $78bn YoY to $1,787bn; customer loans up 1% YoY to $988bn.

• Return on tangible equity reached 17.2% for the full year; CET1 capital ratio at 14.9%.

• Full-year Banking NII was $44.1bn; FY26 guidance of at least $45bn.

Outlook and guidance

• Targeting 5% revenue growth by 2028 and RoTE of 17% or better each year through 2028, excluding notable items.

• Dividend payout ratio maintained at 50% of EPS, excluding material notable items.

• FY26 cost growth guidance of ~1% and ECL charge guidance of ~40bps.

• 2026 Banking NII expected at least $45bn, with deposit growth and structural hedge offsetting lower rates.

• CET1 ratio target range of 14–14.5%.